1. Faculty Release Time Kristina Randig, Assoc. Dir., Financial Services / MAPO, CO Angel Thayer, Budget Analyst, CSU Sacramento April 23, 2015

2. Learning Objectives Define Faculty Release Time (FRT) Requirements for recording FRT Review models for recording FRT Review split funding versus split positions set up in PS HR including benefit allocation April 2015Year-End Legal Training2

3. Resources CSU Legal Accounting and Reporting Manual Chapter 23 – Cost Recovery – Section 3.3 #9 http://www.calstate.edu/SFSR/Workshops/index. shtml http://www.calstate.edu/SFSR/Workshops/index. shtml CSU Business Process Guideline – Faculty Release Time and Cost Match (Reference Handout) CFS LCD Query Setup (Reference Handout) April 2015Year-End Legal Training3

4. What is Faculty Release Time? When faculty member is awarded a grant or other type of agreement that requires a certain level of effort that may be met by being released from teaching units to perform work on a sponsored project. This can be either reimbursed time charged to a grant or agreement or may be assigned time proposed as cost match/share. When this happens, a replacement is hired to fill the resulting vacancy. April 2015Year-End Legal Training4

5. FRT for a Grant (Example) Marine Biology 300Grant – National Class with 75 StudentsBiology Foundation – Shark StudyFaculty Jones Hire Replacement – Faculty Smith CSU Fund 485Grant Funding April 2015Year-End Legal Training5

6. NACUBO Requirements The NACUBO program code for the released faculty expenses related to the grant must follow the program code for the grant. This requirement became effective as of July 1, 2010 for legal- and GAAP-basis reporting. This requirement also applies to cost match/share where the campus is required to contribute a specified share of the funding as part of the grant agreement. April 2015Year-End Legal Training6

7. NACUBO Program Code - Resources CSU Legal Accounting and Reporting Manual, Chapter 3 - FIRMS FIRMS Program Code Definitions - http://www.calstate.edu/es/intranet/applications/f ob/firms/firms-data-element-dictionary/program- code.shtml http://www.calstate.edu/es/intranet/applications/f ob/firms/firms-data-element-dictionary/program- code.shtml April 2015Year-End Legal Training7

8. NACUBO Program Code 0101 General Academic Instruction. This subcategory includes expenses for formally organized and/or separately budgeted instructional activities that are carried out during the academic year……. A classification of Instruction Programs, and offered for credit as part of a formal post- secondary education degree or certificate program……… April 2015Year-End Legal Training8

9. NACUBO Program Code (example) 0202 Individual and Project Research. This subcategory includes expenses for research activities that are managed within academic departments. Such activities may have been undertaken as the result of a research contract or grant or through a specific allocation of the institution's general resources. April 2015Year-End Legal Training9

10. FRT on a Grant (Example) Marine Biology 300Grant – National Class with 75 StudentsBiology Foundation – Shark StudyFaculty Jones Hire Replacement – Faculty Smith 01010202 CSU Fund 485Grant Funding April 2015Year-End Legal Training10

11. Items to note in FRT Guideline Only includes scenarios that do not result in a GAAP adjustment. Booking the entry in GAAP only, does not meet the legal accounting basis reporting requirement. Does not address budget scenarios or models. Though not illustrated in the guideline, journal entries must include FTEs. See CSU Legal Accounting and Reporting Manual, Chapter 4, Section 3.3.1 - Processing Journals with FTE. April 2015Year-End Legal Training11

12. Models Model A – Global DeptID in a University Wide Division – Grant on Auxiliary Side (5.1) Model B – Global Fund – Grant on State Side (5.2) Model C – Global DeptID in a College Subdivision – Grant on Auxiliary Side (5.3) Model D – LCD– Grant on Auxiliary Side (5.4) Model E – LCD with HCM Modification (5.5) April 2015Year-End Legal Training12

13. Split Funding in HCM - DBT HCM setup required for split funding. Faculty remains in single operating fund position in Position Management (Position A). Department Budget Table (DBT) is setup to split funding percentage between operating fund and grant chartfield string. Upon the completion of the LCD process; salaries and benefits will post to the ledger via LCD journal entries with split funding. April 2015Year-End Legal Training13

14. Split Funding – DBT (Example) April 2015Year-End Legal Training14

15. Split Positions in HCM – PM Faculty example is based on tenure track full-time (1.0 FTE) faculty making the same salary in both positions. HCM setup required for split positions. Faculty are hired in two positions in Position Management (PM); each position is assigned a funding percentage. Position A - operating fund chartfields 60% (.60 FTE) Position B - grant chartfields 40% (.40 FTE) Upon completion of the LCD process; salaries will post to the ledger via LCD journal entries with split funding. Benefits do not split per assigned percentage on positions in Position Management April 2015Year-End Legal Training15

16. Split Positions HCM – PM (Example) April 2015Year-End Legal Training16

17. Split Positions – PM (Example – Cont.) April 2015Year-End Legal Training17 Benefits do not split per assigned percentage in PM Lump sum type benefits won’t split; only percentage based benefits

18. www.calstate.edu April 2015Year-End Legal Training18